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10 Mar 2014
Flash: Go with the stronger AUD - RBS
FXStreet (Barcelona) - Paul Robson, Senior FX Strategist at RBS notes that the AUD/USD market is not pricing a rate hike in Australia fully until Jun-2015, and some chance of cuts up to Nov-14.
Key Quotes
“The chances of a cut look overplayed after the recent pick-up in high frequency data and this favours tactical AUD longs, in our view.”
“Technical indicators point to a potential inverted Head and Shoulder pattern with a neckline at 0.9085. This is the breakdown level when RBA Governor Stevens first mentioned he'd like to see AUD closer to 0.8500. This leaves the next key technical level at the 200 day moving average (0.9170).”
Key Quotes
“The chances of a cut look overplayed after the recent pick-up in high frequency data and this favours tactical AUD longs, in our view.”
“Technical indicators point to a potential inverted Head and Shoulder pattern with a neckline at 0.9085. This is the breakdown level when RBA Governor Stevens first mentioned he'd like to see AUD closer to 0.8500. This leaves the next key technical level at the 200 day moving average (0.9170).”